Does the USA have market power in importing ethanol from Brazil?
by Sunil P. Dhoubhadel; Azzeddine M. Azzam; Matthew C. Stockton
International Journal of Trade and Global Markets (IJTGM), Vol. 10, No. 2/3, 2017

Abstract: With the ever increasing requirement in the USA to blend higher volumes of advanced biofuels with gasoline and the shortfall in domestic production to fulfil this requirement, imports of ethanol from Brazil will likely take on an even more vital role. In this paper, we examine US buyer power over Brazil. For methodology, we estimate the sugarcane ethanol residual supply function facing the USA. We find that while the USA had buyer power before the enactment of the advanced biofuels mandate, that buyer power disappeared after the mandate. One possible explanation is that, given that Brazil is the primary source of the sugarcane ethanol, the mandate requirement has increased rivalry between the USA and the remaining importers, creating a perfect market overlap between the rivals.

Online publication date: Tue, 22-Aug-2017

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Trade and Global Markets (IJTGM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email